W49 Cashew Update: Vietnam’s Cashew Nut Exports Surge and Positive Production in Nigeria

Vietnam’s Cashew Nut Export Surged Due to Strong Demand Globally

Vietnam's cashew nut exports in 2023 are estimated to reach USD 3.31 billion, with an export volume of 582 thousand metric tons (mt). This shows a 23.1% year-over-year (YoY) increase in volume and a 17.4% YoY rise in value.The United States (US) was the largest destination for Vietnamese cashew nuts in the first ten months of 2023. Meanwhile, China emerged as an active importer due to its big gap between demand and supply. In Oct-23, Vietnam's cashew exports to China reached a new record high, with 14.85 thousand mt valued at USD 88.7 million, a 69.4% increase in volume and a 77% increase in value compared to the previous year. For the first ten months of 2023, Vietnam shipped nearly 85.31 thousand mt of cashews to China, worth USD 522.4 million, marking a 43.% YoY increase in volume and a 47.2% YoY rise in value compared to the same period in 2022. The average export price to this market reached USD 6,123/mt, showing a 2.8% YoY increase.

In Nov-23, the demand for Vietnamese cashews in the European Union (EU) increased by 7% YoY due to promotions and anticipation for the upcoming holiday season. Furthermore, the US market saw a rebound, with import figures catching up after a sluggish in the first half of 2023. The prices remain favorable, supported by heightened demand from global retailers aiming to secure supplies into 2024 and possibly early 2025. Furthermore, the high production costs and interest rates in Vietnam will further support the price.

Nigeria's Cashew Projections Surpass 500 Thousand MT by 2028

Nigeria's cashew production in 2023 is expected to surpass expectations, with projections soaring to over 500 thousand mt by 2028. Despite a positive production, Nigeria's domestic consumption is relatively low, with most cashews used for exports. Like most African cashew producers, Nigeria sells most of its cashews as raw cashew nuts (RCN) to Vietnam, where the cashews can be further processed and exported to end-consuming countries. In the first ten months of 2023, the country exported 355 thousand mt of cashews, primarily to Vietnam and India. With the expansion of output, Nigeria aims to improve its processing capacity. In 2023, the country opened two high-profile processing plants, and five additional plants will commence operations in the coming months. Furthermore, subsidies from the government, such as tax cuts for cashew processing plants will further support and incentivize the industry's growth.